Delta Queen riverboat hotel remains sole proposal for NSB land

NEW SMYRNA BEACH -- Mirroring results from last year, the city received only one development proposal for the property it owns along the North Causeway after soliciting bids for the site.

The sole bid is one city leaders should be thoroughly familiar with by now -- a proposal to bring the Delta Queen riverboat to New Smyrna Beach as a floating hotel.

Wayne and Judy Heller, owners of the Riverview Hotel and Spa on Flagler Avenue have for months asked the city to lease them five acres at 160 N. Causeway to dock the historic vessel as a 88-room floating boutique hotel.

Wayne Heller pleaded his case at a few City Commission meetings, though his proposal was never officially on the agenda.

The City Commission in April instead opted for what commissioners said was a more transparent process, voting to send out a request for proposal to allow other bidders to lease and develop the site.

The Hellers submitted the only bid Wednesday, beating the city's 2 p.m. deadline by a few hours.

Heller said his proposal is pretty much the same as it's always been, and now it's up to the commission.

"It's sort of, do they want to do it or do they not want to do it?" he said.

Built in 1927, the Delta Queen served as a passenger vessel for decades and is a National Historic Landmark. Since 2009, it has been moored in Chattanooga, Tenn., as a hotel.

Heller said he is on the verge of finalizing a purchase agreement with Xanterra Parks and Resorts for the vessel.

"We're actually to the point where I'll probably sign it this week," he said.

The commission should consider the proposal for the Delta Queen at its Sept. 11 meeting, City Manager Pam Brangaccio said.

Heller said that since he has a tight timeline to buy the vessel he's hoping city officials can speed up the process. He said he hopes to take possession of the riverboat by December, dry dock the vessel and then have it towed to Florida in January. Besides obtaining various regulatory approvals, the Hellers would still have to hammer out a lease agreement with the city.

"Time is of the essence," he said.

While only one bid was received for the North Causeway site, City Commissioner Jim Hathaway, who has been supportive in the past of plans for the Delta Queen, said it was the right move to send out a request for proposal for the property.

"I think everybody wants to be sure that we're not cutting deals with people behind the scenes and we're being open as we can about offering a piece of city property for lease," Hathaway said.

City Commissioner Jack Grasty said Heller still needs to present proof from U.S. Army Corps of Engineers, The Florida Inland Navigation District and U.S. Coast Guard that the 285-foot long boat won't stick out in the channel and pose a navigational hazard to other vessels.

"If we have those three questions answered, we would definitely do some more talking," Grasty said.

Hathaway said he also wants to see Heller's plans to develop the physical property at the North Causeway location.

The site is commonly referred to as the Administrative Office Building site because a building there was once used to house city offices. Heller said he would like to renovate the building as a spa, an extension to his Flagler Avenue spa facility.

The city sent out a request for proposal last year for the North Causeway site, which yielded only one response. An Orlando restaurateur wanted to build a waterfront grill there called Chicken Island. A task force formed by the city ultimately rejected that proposal.

"I was sort of disappointed we didn't get more proposals because it is a great piece of property," Grasty said of this year's process.